SECTION 49.521. Action by HHSC

(a) HHSC may take one or more of the following actions against a contractor in accordance with §49.522 and §49.523 of this division (relating to Corrective Action Plan and Referral Hold):

(1) require the development of and compliance with a corrective action plan; and

(2) impose a referral hold.

(b) HHSC may consider the following factors in determining the action to be taken:

(1) the extent and seriousness of the contractor's non-compliance with the contract that is the subject of the action;

(2) the contractor's history of previous non-compliance with:

(A) the contract that is the subject of the action;

(B) a contract other than the one that is the subject of the action;

(C) a contractual agreement with HHSC; and

(D) a contractual agreement with a governmental entity other than HHSC;

(3) previous action taken or sanctions imposed against the contractor by DADS or HHSC; and

(4) the contractor's written response to HHSC's finding that the contractor is not in compliance with the contract.

Source Note: The provisions of this §49.521 adopted to be effective September 1, 2014, 39 TexReg 6637; amended to be effective September 1, 2018, 43 TexReg 5230